EURUSD dips on Brexit concerns & Texas Instruments revenue warnings

Intermediate
  • A dip lower for the Euro on Tuesday give concerns regarding Brexit.
  • The UK Parliament agreed to progress the Brexit deal but then took control of the timetable, which the government would not accept. The government then paused any further passage of the Brexit bill as Boris Johnson stated that he would await the response from the EU regarding the extension request beyond 31st October and also indicated that any noteworthy extension could result in a general election.
  • The US Dollar also rallied across major currencies with a move to a “risk off” scenario overnight after a disappointing revenue warning from Texas Instruments (TXN) after the bell. This sent equity indices lower and saw the US$ rally as a safe haven.
  • The combination has been for a dip in EURUSD, but the near-term outlook remains positive whilst above 1.1100.

EURUSD: Holding onto a rebound bias

A Tuesday setback through initial support at 1.1135 but to then try to rebound from above 1.1100, to hang onto upside forces from Friday’s surge through a notable August resistance at 1.1164 after Thursday’s strong advance through key 1.1110 (for an intermediate-term bull shift), to keep risks higher for Wednesday.

The mid-October surge through 1.1110 set an intermediate-term bull trend.

For Today:

  • We see an upside bias for 1.1154 1; break here aims for .1183/91 then maybe 1.1229.
  • But below 1.1100 aims towards 1.1063.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.1250.

  • Higher targets would be 1.1322 and 1.1412.
  • What Changes This? Below 1.0989/82 shifts the intermediate-term outlook back to neutral; through 1.0939 is needed for an intermediate-term bear theme.

4 Hour EURUSD Chart

EURUSD chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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